OFFICE OF FISCAL ANALYSIS
Legislative Office Building, Room 5200
Hartford, CT 06106 (860) 240-0200
http://www.cga.ct.gov/ofa
sHB-6582
AN ACT CONCERNING UNEMPLOYMENT BENEFITS FOR
ADJUNCT FACULTY.
Primary Analyst: JS 4/6/21
Contributing Analyst(s): CW
Reviewer: SB
OFA Fiscal Note
State Impact:
Agency Affected Fund-Effect FY 22 $ FY 23 $
Board of Regents for Higher
Education
Various - Cost 39,529 40,714
Board of Regents for Higher
Education
Various -
Potential Cost
Potential
Significant
Potential
Significant
UConn Various -
Potential Cost
Potential
Significant
Potential
Significant
Note: Various=Various
Municipal Impact: None
Explanation
The bill establishes a new process regarding potential eligibility for
unemployment among college and university adjunct instructors. The
bill results in a potential significant annual cost to the constituent
units, beginning in FY 22, associated with the possibility of increased
unemployment claims. The significant cost is potential because the
Connecticut Department of Labor ultimately determines whether to
grant unemployment benefits. The bill also results in costs to the
Board of Regents of $39,529 in FY 22 and $40,714 in FY 23, associated
with the addition of personnel needed to comply with the bill.
The potential significant cost related to unemployment benefits is
borne by the constituent units because as reimbursable employers, the
units do not pay unemployment insurance taxes. Rather, they
reimburse the state Unemployment Insurance Trust Fund dollar-for- 2021HB-06582-R000308-FN.DOCX Page 2 of 3
dollar on all benefits paid for former employees.
The potential significant cost to the Board of Regents institutions is
based on adjunct employment information for each fall and spring
semester since fall 2019. Every semester, between 885 and 1,037
adjuncts did not return from the prior semester and therefore could
potentially be determined as eligible for unemployment benefits under
the bill, as they may have lacked "reasonable assurance" of returning to
a similar position. However, the bill's criteria for "reasonable
assurance" includes that the person's position is not contingent on
course programming, and it is possible that at least some adjunct
contracts are contingent; if so, then the reach of the bill expands.
Similarly, the bill requires the "reasonable assurance" information on
each adjunct to be submitted ten days before the end of every term,
and if adjuncts typically do not have next-term offers at that point,
then it is possible more adjuncts would be potentially eligible.
The cost to the Board of Regents is associated with the hiring of a 0.5
FTE Data Analyst I at anticipated costs of $39,529 in FY 22 and $40,714
in FY 23. The FY 22 costs consist of $20,212 in wages and $19,317 in
benefits, with FY 23 costs of $20,818 in wages and $19,896 in fringe
benefits.
1
The data analyst will be responsible for gathering and
submitting the required information on each adjunct employed by a
Board of Regents institution, ten days before every term, as the bill
mandates. The Board of Regents institutions annually employs
between 3,400 and 4,500 adjuncts annually. Because the University of
Connecticut has fewer adjuncts, between 630 and 700 per term, it is
anticipated the university will handle the bill's responsibilities using
existing resources.
The potential significant cost to the University of Connecticut
(UConn) is also associated with the possibility of newly paying
1
The fringe benefit costs for employees funded out of other appropriated funds are
budgeted within the fringe benefit account of those funds, as opposed to the fringe
benefit accounts within the Office of the State Comptroller. The estimated active
employee fringe benefit cost associated with most personnel changes for other
appropriated fund employees is 95.57% of payroll in FY 22 and FY 23. 2021HB-06582-R000308-FN.DOCX Page 3 of 3
unemployment compensation to some adjuncts due to the bill. Data
regarding the number of UConn adjuncts who do not return for the
next semester were unavailable.
The extent of the bill's potential costs to the constituent units will
depend on numerous factors regarding the adjuncts who are
determined to lack reasonable assurance. These factors include but are
not limited to the pay rates of the adjuncts (approximately $1,000
biweekly, on average, with individual variation due to teaching load)
and whether the potentially eligible adjuncts file for unemployment
benefits.
The Out Years
The annualized ongoing fiscal impact identified above would
continue into the future subject to inflation in adjunct pay rates and the
number of adjuncts employed by the constituent units.